Several stock market indicators are showing us signs of a potential pullback. Positive earnings reports have been sidelined as China and rising COVID-19 cases take priority. There’s been a shift into names that went up during the pandemic. I’ve identified one health care stock with upside potential and two stocks to short in this market environment — and more in today’s stock market recap.
Stock Market Recap
Global markets are mixed as European stocks rose and Asian markets fell.
Stocks have been opening higher and closing lower lately, which is an early sign of an overall bearish move. Momentum levels, the put/call ratio and large stocks driving markets are showing signs of an upcoming pullback.
Direct consumer spending stocks have moved higher. We could see defensive stocks gain momentum, as we did in 2020, if the delta variant continues to spread. This is a market where you want to have some exposure to the short side.
Roger’s Radar: 1 Bullish and 2 Bearish Plays
I’ve identified three high-probability, short-term pullbacks. The long trade is on AbbVie Inc (NYSE: ABBV). ABBV is a pharmaceutical company operating worldwide. The stock has pulled back to its 50-day moving average and its upward trend is strong.
The two short stocks are doing the opposite. They’re bouncing back to their 50-day MA and have a strong downward trend. The 200-day MA has crossed above the 50-day MA, which is a bearish sign. One company provides commercial AC and heating and the other provides insurance services.
In this video, you’ll learn what the divergence on the Nasdaq 100 means to us… whether the put/call ratio is signaling overbought levels… which sectors are rising due to increased COVID-19 risk… which stocks to buy right now for big profit potential…and which stocks to sell for a smart risk hedge.
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Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.